Meeting of the Board of the Bank of Lithuania
The number of companies holding the payment institution licence increases
Today, the Board of the Bank of Lithuania decided to issue two payment institution licences granting the right to provide a payment service envisaged in the Law on Payments, Article 5.6., Money Remittance. Licences will be issued to UAB “Kaišiadorių butų ūkis” and UAB “Kauno spauda”. Until now, 15 enterprises have been holding licences to provide payment services.
UAB “Kaišiadorių butų ūkis” intends to collect and transfer to the providers of utilities and/or other services the amounts paid by the consumers of those services (heating, hot/cold water, gas, electric energy, etc.). The Company informed that as soon as it receives a payment institution licence, the collection of payments from the payment service consumers will be carried out in two ways: payments from consumers in cash settled in litas will be collected in cash offices of a company or consumers will be provided a possibility to settle payments for the services provided via the internet.
UAB “Kauno spauda” collects payments in cash for the provided utilities, communication services, subscription of dailies and transfers of the payments to the providers of those services. Now, payments are collected at trading desks of UAB “Kauno spauda”, i.e. at 115 news-stands and 7 pavilions. The Company informed that it has concluded cooperation agreements on the provision of payment services with more than ten service providers (UAB ,,Omnitel“, UAB ,,Kauno vandenys“, UAB ,,Kauno energija“, AB ,,City Service“, etc.). UAB “Kauno spauda” intends to extend the retail chains and the list of service providers, and to install POS-terminals at all trading desks, etc.
The Board of the Bank of Lithuania also decided to include AB “Lietuvos paštas”, which is an agent of UAB “Viena sąskaita” payment institution (Kaunas), into the public list of payment institutions.
Bankas “Swedbank”, AB is instructed to eliminate the deficiencies identified during the inspection
The Board of the Bank of Lithuania discussed the results provided by the Credit Institutions Supervision Department of the full-scope inspection of Bankas “Swedbank”, AB. The inspection checked the administration of the Bank, its internal control, and management of credit, liquidity, risk and operational risks
The Board of the Bank of Lithuania instructed Bankas “Swedbank”, AB to prepare the plan for the elimination of deficiencies identified during the inspection and Supervisory Review and Evaluation Process of Bankas “Swedbank”, AB in relation to the bank administration systems as well as other deficiencies of bank operation and to present that plan to the Bank of Lithuania.
Bankas “Swedbank”, AB was instructed to eliminate the bank operation deficiencies identified during the inspection and Supervisory Review and Evaluation Process until 30 November 2011.
The Head of the Administration of Bankas "Swedbank", AB was instructed to come to the Bank of Lithuania and to explanation how Bankas "Swedbank", AB is planning to eliminate the identified operational deficiencies of the Bank and to inform how it eliminated the deficiencies by the end of the deadline.
One credit union was given a warning and two credit unions were imposed fines for breaches of laws
The Board of the Bank of Lithuania gave a warning to "Kupiškėnų taupa" credit union since it did not comply with the large exposure requirement. The Board imposed fines to “Druskininkų kredito unija” for the failure to comply with the liquidity ratio and to “Žemdirbio gerovė” (Šiauliai) because the amount granted for the head exceeded 10% of the adjusted capital of the credit union.
The Board of the Bank of Lithuania was presented a report on foreign reserve assets investment
The Board of the Bank of Lithuania was presented a report about the investment of Market Operations Department for the first half of 2011. The report reviews the changing trends in foreign reserves, investment results and factors thereof. The Board was presented estimates of exchange rate, interest rates and credit risk. Stress testing results were also submitted.
It should be noted that, in the first half of 2011, investments were made in the environment of increased doubts about the financial sustainability of the euro area and the resulting strong volatilities in profitability rates in the environment. Stress testing results point that even in the case under most unfavourable scenarios in the market, the value of foreign reserves would change only marginally over the year.
The Board of the Bank of Lithuania gave positive evaluation of the investment results.
The Board of the Bank of Lithuania approved medium-term macroeconomic projections
The Board of the Bank of Lithuania approved the new medium-term macroeconomic projections of the Bank of Lithuania.